3 Major Home Renovation Mistakes That Decrease Property Value

Plenty of homeowners with the notion to sell their assets decide on doing a little home renovation to increase property value. Unfortunately, in an effort to do good, some homeowners do the exact opposite, subjecting their homes to changes that actually decrease the property value when not properly researched or executed.

Whether this represents the homeowner’s own funky tastes or a lack of effort in researching what would be profitable, renovations are serious, expensive, and time consuming--so they shouldn’t be taken lightly. Avoid these three renovations mistakes like the plague if you want to keep from pouring money into sunk costs.

1. Rushing in Without a Plan

Before you start diving in, make a solid plan. Know exactly what everything is going to cost you in material, as well as in time, labor, and construction. Also know how much it is projected to raise the value of the property. Weigh the ROI of projects against the resources they require, and implement the most profitable projects.

The projects themselves need to be well-planned out as well, or else you might end up tearing down walls without preparing for what’s behind them. Caitlin Murphee Miller lists “tearing down walls” in such a manner the sixth biggest home remodeling mistake people make, in her article for Southern Living.

“Altering structural elements, relocating pipes, and moving electrical utilities are not cheap processes,” she writes. “Make sure your project is a must-do, and then consider whether you’re willing to deal with whatever (potentially expensive) issues may be uncovered when you get started—especially in older homes.”

2. Focusing Solely on Kitchen and Bathroom Renovations

It’s true, kitchen and bath remodels find their way into many lists about home improvement that can increase property value. Just ask HomeBridge’s Abbie Ethun, author of “Five Low Cost Home Improvements That Can Increase Property Value”.

“Minor kitchen and bath remodels often bring a high return on investment when it’s time to sell,” she writes--and this is important, because she definitely uses the word “minor”. Focus on replacing knobs and fixing the cupboards as opposed to tearing up and redoing the kitchen floor.

Instead of upgrading the kitchen, put your money into more lucrative projects, such as attic insulation, which could see anywhere between 108 percent and 116 percent ROI. A new garage door could see 92 percent ROI. The point is, there are plenty of other projects that will net you a much higher return that a massive kitchen or bath overhaul.

3. Making Your Home Clash With the Neighborhood

Better Homes and Garden lists “Making your home clash with the neighborhood” as the sixth common remodeling mistake that people commit, and is a “sure way to sour relationships with your neighbors and potentially harm your home’s resale value.” Not everybody living on the historic avenue might appreciate an old Victorian after its contemporary design facelift.

Furthermore, make sure that any additions you make to the home don’t begin to crowd other homes. In your planning stages, you should also be making sure that you’re not breaking neighborhood covenants or bylaws. It’d be a shame to go through the extensive process of an exterior renovation only to be told that you’ll have to undo all of that work and revert it back to the original.

By avoiding these three major home renovation mistakes, you could turn a little bit of money, time, and elbow grease into moderate property value gains. If you can think of any other mistakes to avoid, feel free to add to the conversation.